Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016
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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India requiring 17 go to win versus Australia.
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In his two-bedroom home located in central Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right hand.

He has actually made more than 10 calls in the last 30 minutes - not to talk about the match however to keep revising his bet.

Five minutes earlier his cash was on Australia, today as the Indian batsman gets all set to deal with the last over he's altered his mind.

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

And a couple of minutes later on his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childlike glee.

For more than 3 decades he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering distributes grow in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting market is worth some $150bn a year. And much of that sports betting cash is directed towards cricket.

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest private run scorer.

Most of these transactions involve "black money", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law forbiding internet gaming, there is absolutely nothing similar here.

And offshore wagering companies are utilizing this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas companies.

"Legally you can escape [with this], as the law is ambiguous for online sports betting," says Mumbai- based lawyer HP Ranina.

But regardless of this, it is "offline gambling", done through telephone call which dominate the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been prohibited for two years after some players and group officials were condemned of fixing parts of the match at the wish of bookies.

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that could amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the right direction.

"I do not mind paying some money out my earnings, as long as I can gamble publicly," says our cricket bettor.

It would also open a huge business opportunity for certified bookies and global online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals included in gambling more transparent.

"If you work alongside wagering business, you will have a very efficient approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes levied on the gambler and the bookie will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) people wouldn't want to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted money to put big bets will never ever gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard idea to offer.

"Despite the fact that numerous people are included in some sort of gaming - it's still a questionable problem for lots of," states our unnamed punter.
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And provided that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their territory.

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the concept having been backed by an official panel for the very first time, a minimum of an argument has actually ignited around a topic - which until now was considered a taboo.